cryptopotato.com
The rare $UNI transfer by Uniswap Foundation had put significant pressure on the token over the past week. But the data suggest that “selling pressure has gotten exhausted.”
The prominent on-chain analyst, Ali Martinez, believes that $UNI could be on the verge of a breakout.
$UNI Gearing up for Breakout?
Citing Intotheblock’s data, Martinez said that over 87% of $UNI holders are positioned “Out of the Money” meaning they are yet to realize a profit. This essentially suggested that Uniswap’s native token is preparing for a breakout.
“With 87.56% of $UNI holders positioned “Out of the Money,” Uniswap is preparing for a breakout! $UNI investors are in disbelief; selling pressure has gotten exhausted, and an important support floor was built around $4.”
The analyst further pointed out the surge in the number of large $UNI transactions, signaling a spike in institutional players’ and $UNI whales’ interest at current price levels.
Such a trend suggests that these market participants may be “investing or positioning themselves” before $UNI breaks out.
The analyst speculated that even though $UNI established a crucial support level at $4, there are two significant resistance barriers it must surpass in order to indicate a bullish breakout.
The first barrier is positioned at $4.23, with 7,000 addresses accumulating 14.24 million $UNI, while the second one is at $4.45, where 2,000 addresses control 10.28 million $UNI.
Uniswap’s Token Transfer
Over the past six days, Uniswap Foundation transferred out a total of 9.8 million $UNI, worth around $40.66 million. Lookonchain revealed that the team behind the development and expansion of the Uniswap protocol deposited 3.4 million $UNI, worth around $14.1 million, to OKX.
The foundation deposited the rest 3 million $UNI (worth $12.45 million) and 3.4 million $UNI (worth around $14.1 million) to Kraken and FalconX, respectively, during the period.
The movement of such huge stashes of $UNI had not occurred in the past two years. This essentially spurred concerns about a potential sell-off. Despite mass inflow to exchanges, there hasn’t been any drastic reduction in $UNI’s price, and recorded a minor loss of 1.54% over the last seven days.
In fact, the token was still holding its price well above $4.